Maintaining a healthy cash flow is one of the many challenges that any business owner faces. As a part of the medical industry, you can easily find yourself strapped for working capital as you wait for patients to pay their bills. Accounts receivable financing is a convenient form of healthcare financing that can help you stabilize your practice and allow you to continue providing quality care to your clients.
What Is Accounts Receivable Financing
Most medical billing is done through a patient’s insurance company, and payment may take anywhere from 30 to 120 days to receive. Financing your accounts receivables allows you to work with a bank or factoring company that will advance you a large portion of the monies due up front. The financing company then collects the debt from the client. After the invoice is paid, you will receive the remaining balance, minus the financing fees. The process is usually very efficient and can be significantly faster than other lending options.
Who Can Benefit From Accounts Receivable Financing?
The medical industry encompasses a broad range of service providers who are experiencing the stress and frustration of delayed payments from clients and insurance companies. Doctors’ offices and hospitals are among those who can take advantage of healthcare financing, along with home health care providers and nursing homes. Ambulance companies, diagnostic centers, laboratories and medical equipment companies can also boost cash flow through accounts receivable financing.
Advantages for Your Company
Whether your company is small or large, you can enhance your business through healthcare financing. You may need an injection of working capital to assist you in making payroll and meeting other operating expenses for your practice. Perhaps you are hoping to renovate your office to make it more comfortable and appealing to your clients and patients. You may be planning to add more services to improve the quality of care you provide. Whatever your goals are for your business, financing your accounts receivable can ensure that you have a reliable cash flow to run your company smoothly.
As costs to healthcare providers rise and government regulations change, medical professionals continue to face obstacles and pressures. The time period it takes to receive payment for services rendered can present difficulties for business owners who are dealing with a lack of operating funds. Healthcare financing can provide you with peace of mind and offer you a dependable source of capital. Consider financing your accounts receivable to help you grow and expand your practice.
